Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres
Last week MDN reported that Vantage Energy, a Colorado company with major operations in the Marcellus, was once again attempting to float an initial public offering of stock (see Vantage Energy Tries New IPO After Striking Out 2 Yrs Ago). Must be that was a clever fake-out move because yesterday Rice Energy announced they are buying Vantage in a deal worth $2.7 billion. Included in the deal are 85,000 acres of Marcellus leases in Greene County, PA. Also included, another 52,000 acres of Utica Shale leases. Oh! And 37,000 acres of leases in the Texas Barnett Shale–meaning Rice is about to lose its laser focus on the Marcellus/Utica and will no longer be a “pure play” company. The deal instantly elevates Rice’s production predictions for 2017 by 70% over the previous guidance given. In order to pay for the deal, Rice also announced they are floating a new massive round of stock, 40 million shares, which they hope will bring in something over $1 billion in cash. Here’s the details…
Read More “Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres”
The legal beagles at the Norton Rose Fulbright law firm recently issued a post on their Hydraulic Fracking Blog with updates on five important bills currently before the PA House and Senate that will affect the Marcellus industry (drillers, midstreamers and landowners)–with details for what’s in the bills and the status for each bill. Likely the most controversial of the bills is House Bill (HB) 1391, which would guarantee PA landowners a 12.5% minimum royalty regardless of post-production costs. That bill is due for a procedural vote today. Other bills are in bottled up in various committees where they may or may not make it out for a full vote. The PA House is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26, and Nov 14, 15. That’s it–just 10 more days in session before the end of the year. The PA Senate is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26. Just 8 more days for the Senate. So whatever is going to happen must happen quickly. Here’s a rundown on the five important bills, including HB 1391 (“Amendments to Oil and Gas Lease Act”), HB 2275 (“Changes to Environmental Quality Board membership”), HB 2277 (“Amendment to Oil & Gas Act related to bonding requirements”), HB 2319 (“Amendment to Oil & Gas Lease Act”), and HB 2361 (“Pennsylvania Turnpike Right-of-Way Act”)…
Several news sources are reporting that EmberClear has committed to fund and build a new $900 million, 1,000-megawatt electric generating plant in Harrison County, OH. The new plant will be fed by Utica Shale gas. Officials in the county have been working on a deal to lure the plant to the county since December of last year and stress it is a “long-term project” and “not a slam-dunk” because of extensive regulatory hurdles. If the project happens, it will generate 500 temporary construction jobs and 30 permanent jobs and use a huge amount of natural gas to power it (good for drillers!). MDN did some checking and found one potential cloud over the deal. EmberClear was, until July, a Canadian-based company. But it went bankrupt and after emerging from bankruptcy it changed its name to Ember Partners, now based in Houston, TX. Apparently the bankruptcy hasn’t slowed them down–but it does raise a question about the financial stability of the company and its ability to fund a big-money project like the Harrison Power Project. However, these projects are typically funded by one or several investors and not by the company that builds and operates the facility…
We’ve written plenty about President Obama’s so-called Clean Power Plan (CPP), introduced last summer, a plan to force electric generators to convert to using more “renewable” sources of energy–and less fossil fuels (see 
Yet another desperate attempt by radical environmentalists to stop the much-needed PennEast Pipeline from getting built. Yesterday the New Jersey Conservation Foundation (NJCF) and Stony Brook-Millstone Watershed Association (SBMWA) asked (more liked begged) the Federal Energy Regulatory Commission (FERC) to withdraw the PennEast application, something called a “no alternative” action, and just let it die a stillborn death. Their argument to FERC seems to rely on the old tactic of “if you can’t dazzle them with brilliance, baffle them with bull$#@!.” Because a few sympathetic rads exist within government agencies like the EPA and Fish & Wildlife Service, and because those agencies were co-opted into sending negative comments about the project to FERC, the radicals at NJ Conservation and Stony Brook Watershed tell FERC it’s best just to scrap the whole thing. No sense in continuing. Move along–nothing else to see here. A nice try at bamboozling FERC, but it’s an agency wise to such deceptions…
Williams continues to face challenges with its board of directors–the people hired to oversee the company and the path it will chart into the future. Nearly half of the Williams board (6 of 14 board members) were part of a cabal that tried to force the company to sell itself to Energy Transfer Equity–a deal that went horribly wrong. Following the aborted merger, six of Williams’ board members tried to engineer a palace coup to depose current CEO Alan Armstrong. The coup failed and the board members quit in July (see 
In August, Williams announced a deal to sell its Canadian businesses and assets to Inter Pipeline for $1 billion (see